RFM to take over Philippines pasta brand

Philippine food and beverage firm RFM Corporation has signed a deal with Dutch consumer goods company Unilever Group to take over the Royal brand and pasta business in a PHP2.1bn ($47.8m) deal.

The acquisition includes the Royal trademarks, goodwill and inventories, but does not include any of Unilever’s facilities or employees.

RFM stated that the acquisition would complement the company’s existing Fiesta pasta brand, one of the leading brands in the country.

Unilever Philippines chairman and CEO Rohit Jawa said that Royal pasta is a high-quality brand which will do well under RFM’s experienced management.

"We continually review our portfolio of brands and Unilever’s decision to divest the Royal brand is in line with our global strategy to focus on our core businesses," Jawa added.

RFM President and CEO Jose A. Concepcion III said: "The company is seeing a positive outlook with its other brands such as White King cake and sauce mixes, baked bread, Selecta milk and Sunkist beverages, as consumer spending promises to be strong this year."

RFM announced in October 2013 that it had raised PHP1.6bn to fund expansions and possible acquisitions. It noted that it will continue to look for acquisitions that will strengthen its position in the food and drinks sector.

The company is also in a joint venture with Unilever for Selecta ice cream.